Non-Qualified Plan Key Insights Benefits Common Pitfalls

1113 reads · Last updated: January 20, 2026

A non-qualified plan refers to an employer-provided retirement or benefit plan that does not meet the standards set by the Internal Revenue Code for qualified retirement plans. Because these plans are not subject to strict government regulations, they are typically more flexible and can be tailored to meet the needs of executives or key employees. One of the main characteristics of non-qualified plans is that they do not enjoy the same tax advantages as qualified plans. For example, employer contributions to non-qualified plans are generally not tax-deductible until the employee actually receives the benefits. Common types of non-qualified plans include deferred compensation plans and Supplemental Executive Retirement Plans (SERPs).

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